Nancy and Peter Enter into a Partnership and Decide to Share

question 16

Multiple Choice

Nancy and Peter enter into a partnership and decide to share profits and losses as follows: 1.The first allocation is a salary allowance with Nancy receiving $13,000 and Peter receiving $11,000.
2) The second allocation is 15% of the partners' capital balances at year end.On December 31,2019,the capital balances for Nancy and Peter are $82,000 and $18,000,respectively.
3) Any remaining profit or loss is allocated equally.
For the year ending December 31,2019,the partnership reported a net loss of $147,000.What is Peter's share of the net loss?

• A) $13,700
• B) $54,000
• C) $5800
• D) $67,700

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Definitions:

Births

The act or process of bringing forth offspring or the occurrence of being born.

Immigration

The action of coming to live permanently in a foreign country, differing from emigration, which denotes the act of leaving one's country.

Deaths

The irreversible halt of all biological activities that keep an organism alive, signifying the conclusion of its existence.

Emigration

Movement of individuals out of a population.